FAQ: NEC Programme

The Project Manager decides the date of Completion and should certify within one week of the date being achieved.

It is the programme identified in contract data or is the latest programme accepted by the Project Manager (which supersedes previous accepted programmes). A revised programme accepted by the Project Manager supersedes previous accepted programmes.

It is a date identified in contract data 1 where the Contractor is obliged to fulfil a certain condition by a certain date. Costs incurred by the Client due to the failure of a Contractor to achieve a Key Date will be recoverable from the Contractor (see clause 25.3)

It is the date identified in Contract Data unless changed in accordance with the contract (i.e. changed through compensation events or acceleration)

It is the date identified in contract data 1 as to when the Contractor should commence works on that project.

It is the date when the contract comes into existence.

Date(s) identified in contract data 1 as to when the Contractor will be given access to the whole site or different dates for different parts of the Site.

It is the date when the Contractor is at that point in time anticipating achieving the status of Completion. This can be compared to the Completion Date to see if they are behind or ahead of schedule. A Contractor showing planned Completion beyond Completion Date will either be in delay for a reason of their own liability, or there may be compensation events yet to agree that may move the Completion Date in line with their planned Completion.

Yes through implemented compensation events. Any compensation event should consider the Contractor’s time affects as well as their cost effects.

Only through acceleration in accordance with section 36 of the contract. Negative compensation events can NOT bring forward the Completion Date or a sectional Completion Date.

If secondary option X5 has been chosen then these will be dates where the Contractor is obligated to hand over that section of works by the date stated in contract data. It is in effect a “mini” Completion Date and can have specific delay damages attached through secondary option X7 if the sectional Completion Date is not achieved.

Clause 31.2 lists all of the elements that should be shown on a Contractor’s programme issued for acceptance. It would be a reason to not accept the programme if it fails to show all the information the contract requires.

Float as identified in clause 31.2 is commonly known as “total float” and is the amount an activity can slip before it will be affecting the critical path. An item with no float is commonly known as “critical” and will impact one of the contractual milestones if it is delayed.

Negative float means a project milestone (e.g. Completion Date, Key Date, sectional Completion Date) is being exceeded. This could either be due to the Contractor’s own liability, or could mean a compensation event is yet to be agreed which could move the contractual date to reduce or remove the negative float.

Not a term identified in the contract, but is the path of logic linked activities that if delayed will be impacting one of the contractual milestones on the project. Clause 31.2 identifies the requirement to show “float” on a programme issued for acceptance, and where float is zero then this would be what is classed as being critical.

These are risks that the Contractor has allowed against their own activities. It is only required to be shown to give comfort to the Client that the Contractor’s programme is more likely to be achieved. If no time risk allowances are shown then the ability to complete by the dates shown on the programme will be in question.

A common phrase used to refer to the difference between planned Completion and Completion Date when planned Completion is earlier than the Completion Date. This type of float is retained in the assessment of any compensation events i.e. is owned by the Contractor.

It depends what type of float is being considered. In very simple terms “total float” is shared by both Parties, but “time risk allowances” and “terminal float” are owned by the Contractor.

Not an obligation, unless such a requirement has been included within the Scope. It is however an obligation to state the principal equipment and resources that are needed to achieve each operation on the programme. Words are therefore obliged to be submitted with each programme to fulfil this requirement and help the Project Manager understand if they can accept that programme or not. With good planning software it is possible to show resources on the programme as a resource profile, which would probably negate the need for words and be much more of a practical management tool for both Parties.

Yes, there are various Client elements that should be shown on the programme as identified within clause 31.2. These include order and timing of work of Client and Others, dates by which they need Client issued Plant and Materials, and any Client acceptance periods.

Not unless this has been specified within the Scope. If it is a Client requirement that a specific software is used, this should be clearly identified within the Scope at tender stage. It should only be requested in a certain software if there is a specific reason why the client needs it. Otherwise it is not advised to restrict the Contractor to use a software they are not familiar with to produce their programmes.

The maximum period between submissions would be the period stated in contract data 1 which for most projects would be either four weekly or monthly. The Project Manager can also instruct a revised programme at any stage, for which the Contractor would have to submit within the period for reply. The Contractor can also submit a revised programme whenever they choose.

The Project Manager should respond to a programme with either acceptance or non-acceptance within two weeks of it being submitted.

The Project Manager should state the reasons why they are not accepting with sufficient detail that will allow the Contractor to correct the submission.

The four stated reasons that the Project Manager can reject a programme for are that the Contractor’s plans they are showing are not practicable, it does not show the information the contract requires, it does not represent the Contractor’s plans realistically, or it does not comply with the Scope.

Acceptance by the Project Manager does not transfer liability from the Contractor to comply with the Scope. If there is an error in the programme that has been accepted (for example the Completion Date has been moved without an implemented compensation event),  the Project Manager would simply instruct them to correct it (which would not be a compensation event). Accepting the programme is more a case of confirming that it was a clear realistic representation of how the Contractor planned to carry out the works. Acceptance of the programme does not accept any liability, for example on durations shown on the programme for compensation events yet to be agreed.

The Contractor may notify that the Project Manager has not responded. If they fail to respond to this reminder within a further week then the programme is treated as being accepted by the Project Manager i.e. deemed accepted.

This is not a valid reason for not accepting a programme. Planned Completion beyond Completion Date may be the Contractor’s liability, or it may be that compensation events (once implemented) will yet move the Completion Date nearer or beyond planned Completion.

In addition to everything already in clause 31.2, the Contractor should in addition show actual progress achieved and the effect upon remaining works, how they plan to deal with any delays and correct notified defects, and show any other changes the Contractor proposes to make.

Yes, although this would lead to a compensation event (unless the instruction was for a reason that was the Contractor’s fault/liability).

Only if contract data states they were willing to do so, otherwise they are under no obligation.

Yes, but that would be a compensation event unless the reason is for one stated in the Scope, or was to suit the Contractor’s method of working.

It is the bringing forward of the Completion Date following the acceptance of a Contractor’s quote by the Project Manager. The acceleration quote can only be accepted/not accepted and there is no mechanism for the Project Manager to make their own assessment if they did not agree with it.

No, they can only be instructed to provide a quotation for acceleration and even then only if the Contractor agrees with the proposed change. If the Project Manager accepts the quotation, then the Contractor will be paid the sum in the quote and the Completion Date will move forward to the earlier date. Any liability for delay damages under X7 will also now be from this earlier date, hence the Contractor will include such risk within their quotation.

By accepting the Contractor’s acceleration quotation.

Yes, there is an obligation for items on the activity schedule to relate to items on the programme.

Yes, they should be shown on the Accepted Programme, but only showing their effect upon planned Completion at this stage. The Completion Date can only be moved once the quotation has been accepted (implemented), which will have agreed the amount that the Completion Date should move by.